Pub. 10 2020 Issue 4

15 Kathy Federico Jack Schmit t Chevrolet O’Fallon K athy Federico started working at the family dealer- ship in 8th grade. She answered the telephone on Saturdays and worked in the accounting office during the summer. When asked about her favorite part of being a car dealer, she said, “The car business is something new every day … it’s never boring. I love meeting all of the people we in- teract with and being involved in our community. Also, I met my husband in the car business, so that was an added bonus!” The biggest challenge she has experienced in the car busi- ness is when the recession hit. “We had to reinvent ourselves to work through lack of sales and a terrible economy. I think the experience taught me that we need to have the ability to regroup and respond quickly to whatever situation arises. I think during COVID we changed processes almost daily to keep everyone safe and make customers comfortable know- ing that they would not get sick from doing business with us.” When asked what she foresees as being the biggest ob- stacle ahead for dealers. Federico said, “Everything in our industry is changing rapidly and many disrupters have been cropping up. Many customers want to do business in a dif- ferent way, including buying vehicles completely online and having the vehicles delivered to their homes. Also, the manu- facturers are putting more and more requirements on the dealer. It is important that our franchise act remains strong to protect all dealers from manufacturer overreach.” We asked Federico what it means to her to work day by day with her dad and to continue as a member of the next generation at the dealership. She says, “It has been a blessing to work with my dad every day. In addition to my dad, my brother, my husband and our kids are all in the car business. It is great to have three generations to bounce ideas off of and receive support from. Family businesses can be tough because parents want and expect the best from their kids. My dad has allowed me enough latitude and guidance to succeed, as well as reas- surance that things will be fine when the business hits a rough patch. He’s seen so much in his time as a dealer, he always adds perspective for me.”  “We had to reinvent ourselves to work through lack of sales and a terrible economy. I think the experience taught me that we need to have the ability to regroup and respond quickly to whatever situation arises. I think during COVID we changed processes almost daily to keep everyone safe and make customers comfortable knowing that they would not get sick from doing business with us.” 1969 The Employee Insurance Trust Fund was established. A Guaranteed Warranty Program was initiated with Iowa dealers. Seat-belt legislation (federal level), sales of fleet vehicles at greater- than-dealer discount and numerous union concerns around the state, and dealer bonding requirements all date back to this decade. Many issues with manufacturers began to surface, affecting manufacturer-dealer relations. 1960s 1960 Dealer Profile